PC Gold Inc.

PC Gold Inc.

January 10, 2011 07:30 ET

PC Gold Discovers Largest Gold-Arsenic System Ever Drilled in Pickle Lake Camp; Wide Near Surface Intercepts up to 0.70 g/t Gold Over 137.50 m Including Multiple High-Grade Zones Such as ...

5.36 g/t Gold Over 9.02 m; Open in all Directions

OTTAWA, ONTARIO--(Marketwire - Jan. 10, 2011) - PC Gold Inc. (TSX:PKL) is pleased to report the discovery of an entirely new, large scale gold-arsenic system in near-surface drilling at the Company's Pickle Crow gold mine property in northwestern Ontario, Canada. The new discovery, named "Central Pat East", has been intercepted in three new widely spaced diamond drill holes, PC-10-105, 108 and 119, drilled in follow-up to gold-arsenic anomalies cut earlier this year in hole PC-10-062 (PR, August 16, 2010). The Central Pat East discovery is located approximately 2 km northwest of the Pickle Crow Mine, and 6 km northeast along the Cohen-MacArthur structure from the past producing, high grade Central Patricia Mine (+4,100 feet deep; 650,000 ounces of gold at 0.38 oz/ton (13.03 g/t)), which hosted arsenopyrite-rich mineralization similar in style to that of Central Pat East.

Central Pat East Discovery Highlights:

  • Considerable potential to delineate a substantial gold resource
  • Large-scale gold-arsenic system
  • Potentially amenable to both underground and open pit mining methods
  • Broad mineralized envelope encompassing multiple high grade zones, such as:
    • Hole PC-10-108: 0.70 g/t gold over 137.50 metres from 114.00 to 251.50 metres
      • including 2.05 g/t gold over 35.65 metres
      • including 3.26 g/t gold over 17.35 metres
      • including 5.36 g/t gold over 9.02 metres
      • including 26.58 g/t gold over 1.50 metres
    • Hole PC-10-105: 0.24 g/t gold over 134.07 metres from 79.90 to 213.97 metres
  • Large footprint: currently drilled dimensions of approx. 300 metres north-south by 100 metres east-west to a vertical depth of 300 metres
  • Open for expansion in all directions

Holes 105, 108 and 119 all cut broad intervals of disseminated arsenopyrite with associated gold in metasediments (argillites, tuffs, banded iron formation (BIF)), including subintervals of semi-massive arsenopyrite with associated quartz veining and flooding. Gold-arsenic mineralization pervades all rock types and is not restricted to a particular lithology. All intercepts show a strong correlation between gold values and arsenopyrite content, accompanied by a relatively even distribution of values within the mineralized envelope.

Hole 105 was drilled to the southeast (bearing 140 degrees) at a dip of minus 70 degrees, and a 100 metre step-back to the north from hole 62 on the same section. Hole 108 was drilled to the northeast (bearing 050 degrees) at a dip of minus 52 degrees, perpendicular to the hole 62 – 105 section. Hole 119, a 100 metre step-back from hole 105, was drilled to the southeast (bearing 140 degrees) at a dip of minus 70 degrees. Assays for hole 119 are pending; however, arsenopyrite was noted from approximately 24.02 to 93.18 metres and again from 241.70 to 311.50 metres.

Commenting on the Central Pat East discovery, Kevin Keough, President and CEO, said: "We're really excited by this discovery as it's unlike anything we – or any previous operators - have ever drilled on the Pickle Crow property. It's a very attractive gold target: large, wide open for expansion, near surface, and offering plenty of potential for generating a substantial resource. Better yet, it's just 2 km northwest and within easy reach of our Pickle Crow mine, and would be highly complementary to our development of that asset. We're continuing to aggressively drill the Central Pat East discovery, supported by our strong balance sheet, including the proceeds of the $10 million financing we closed just a month ago."

Plan view and section maps for the holes in this news release can be viewed on the Company's website at: http://www.pcgold.ca/en/Drilling_2010_-_Maps,_Sections_90.html 

Significant assays for holes 105 and 108 are presented in Table 1, below. Assays for hole 119 are pending.

Table 1 – Central Pat East Significant Assay Results: Note: The Company's policy is to batch drill results, where practical. Widths reported in Table 1 are drilled core lengths. Additional drilling will be required to determine true widths. All assays are performed by Accurassay Laboratories of Thunder Bay, Ontario with check assays carried out by Activation Laboratories Ltd. of Ancaster, Ontario. Assay values are uncut.

Hole ID From (metres) To (metres) Width (metres) Au (g/t) Comments
PC-10-105 79.90 213.97 134.07 0.24 Central Pat East
Including 134.95 139.00 4.05 1.44  
and 160.50 203.70 43.20 0.42  
Including 160.50 164.00 3.50 2.41  
Including 161.00 161.50 0.50 5.81  
and 193.79 203.70 9.91 0.70  
PC-10-108 114.00 251.50 137.50 0.70 Central Pat East
Including 114.00 132.00 18.00 0.93  
Including 129.50 130.70 1.20 6.80  
and 214.50 250.15 35.65 2.05  
Including 232.80 250.15 17.35 3.26  
Including 241.13 250.15 9.02 5.36  
Including 242.00 243.50 1.50 26.58  
PC-10-119 - - - - Central Pat East – assays pending

QA/QC Procedures

PC Gold has implemented a rigorous quality assurance / quality control (QA/QC) program to ensure best practices in sampling and analysis of drill core, the details of which can be viewed on the Company's website at http://www.pcgold.ca/en/QAQC_Procedures_46.html

Neil Pettigrew, M.Sc., P.Geo., Vice President, Exploration for PC Gold and the Company's Qualified Person as defined by NI 43-101, has reviewed and approved the technical information in this press release.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

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